Pensioners urged to claim £750m council tax help

Two out of five pensioners are failing to claim a total of £750m to help with their council tax bills, the Government said yesterday.

The Department of Work and Pensions (DWP) said 1.7m pensioners are missing out on an average of £426 a year each, and those on the lowest incomes could avoid paying council tax altogether.

With less than half of home-owning pensioners claiming money they are due, the Government is starting a campaign to encourage take-up. But it denied this had anything to do with the pensioners' revolt it is facing over council tax rises.

From next week, press adverts and flyers and leaflets in post offices and doctors' surgeries will highlight the benefit.

Chris Pond, the council tax benefit minister, said: "Don't be too proud to claim. You're entitled to council tax benefit, and I want you to get every penny owed."

Anyone claiming the guaranteed element of the pension credit, which ensures a basic weekly income of £102.10 for individuals and £155.80 for couples, should not pay council tax.

Those with less than £16,000 in savings and investments are also able to get some help towards payments. Anyone claiming the benefit before October 6 may also be due arrears back to October last year, when the pension credit was introduced.

David Willetts, the shadow work and pensions secretary, said that 10pc fewer pensioners were claiming the credit than in 1998, and it was "another example of a complicated means test that needs to be made simpler".

Gordon Lishman, director-general of Age Concern, said some pensioners did not realise they are entitled to claim, or are put off by the complexity of the system.

The DWP said the claim form had been reduced to 24 pages from 36 pages, and also covered housing benefit.